XRP has once again entered the positive side. The digital currency appears to be on the rise. The unprecedented increase in XRP price has left many (including traders and analysts) excited. The amazing part of this whole affair is the fact that XRP price turned positive in what has been a very quiet market since the week began. XRP has gained 8% in the last 24 hours.
Before this rise, XRP’s price was flat-lining. It was trading in a tight range of $0.01 this past weekend. The change began in early on Monday with a sudden surge. This took XRP’s market cap up to $500M in an hour.
Large Volume Tokens are Prone to Volatility, XRP Isn’t An Exception
Steadily holding its position for a few more hours, XRP price began to rise at 10:00 BST. The coin moved close to the $12Bn region just before noon. The token was trading at $0.276 as of press time. This pushed the market cap of XRP to $11.9bn based on just circulating supply alone. As a general rule, there are unexplained rises in crypto prices. This is usually evidence that the coin’s fundamentals remain unchanged.
Apart from that there were a number of positive news in the past week, including the Samsung partnership with one RippleNet member. There is also the issue of the public’s musings on one XRP-collateralized stablecoin. All of these happened before the rise.
But this happened last week. There were a few fundamental developments in the past weekend, not to mention today. An analysis shows that there is investor sentiment towards the XRP token. It is still below the price it had at the end of the week. NVTweet Ratio suggests that the recent price movement for XRP isn’t down to additional funds that have been coming in from retail investors who have been pushed to buy as the bullish news came to light.
Large Volume Tokens are Prone to Volatility, XRP Isn’t An Exception
Commentators have attributed the rise in XRP’s price to the conference hosted by Ripple Labs, but this is an unlikely catalyst for the spike in the price of XRP. Large volume cryptos are prone to volatility after a period of price stability. Bitcoin and Ether have experienced sudden breakouts in the past month. Which is the same thing happening to XRP.
Understandably, speculators like volatility. This is because it makes it easier for them to identify and exploit any points available so that they can take advantage of price changes. Although the rise in the price of XRP wasn’t expected, traders won’t turn a blind eye to the opportunity to make quick profit.
